04-10-2021, 05:43 PM
It's my observation that all of our strategies work pretty well when the market goes up every year. I need about 4% return a year to live a happy life. Of course I'd rather have 20% if I get get it while the tide is rising. Not getting destroyed a few years from now is much more important that shooting for 40% now which requires excessive risk.
Bottom line IMO is if you have any skills in fundamental analysis the majority of my stocks can be held. Peter Lynch says I only have to get it right about 6 out of ten times with individual stocks. Unfortunately that is a little harder than it sounds in a normal stock market period when the market doesn't go up significantly 3 out of every 4 years. A chimp could do it the past 10 years so I don't congratulate myself excessively. Many of the best investors failed the decade before. A decade is a long time.
Bottom line IMO is if you have any skills in fundamental analysis the majority of my stocks can be held. Peter Lynch says I only have to get it right about 6 out of ten times with individual stocks. Unfortunately that is a little harder than it sounds in a normal stock market period when the market doesn't go up significantly 3 out of every 4 years. A chimp could do it the past 10 years so I don't congratulate myself excessively. Many of the best investors failed the decade before. A decade is a long time.